Last editedSep 20212 min read
Automation has filtered into almost every aspect of our lives in recent years. Far from being something to fear, it’s made our lives easier in so many ways. In the case of invoicing, it could even save us some money, because the days of manual data entry are long behind us.
If you have ever found yourself lamenting the amount of time you spend sending invoices and chasing up payments then invoice automation might be the solution you’ve been looking for. Invoices get generated and sent faster, and at a much lower cost. They are more efficient and reliable, too, because automation takes the possibility of human error completely out of the equation.
These commercial invoice systems process all invoices automatically and in seconds. Used correctly, they can have a significant impact on billing operations.
Automated invoice processing – how does it work?
With a manual invoice, processing can take anywhere from six to ten days on average and can be costly. Invoice automation cuts this down to mere seconds, with invoices written and sent digitally in the same time it would take you to write the first line of your business address.
When used alongside online payment portals, invoices can also not only be sent automatically but paid automatically too. From inputting the information and sending out reminders to reconciling late payments, the software takes care of everything. And, as so many of these solutions are cloud-based, they can be accessed from any location on any device.
Automated invoice processing works by integrating directly with your accounting software. All you have to do is create the initial invoice and select when you want to send out automatic reminders and/or late payment notices. Customers, meanwhile, can pay the invoice directly and might even have the option to save payment methods for next time. Once payment has been completed, the relevant information is relayed back to your accounting software and the figures are updated in real-time.
Invoice automation benefits
Besides the labour costs associated with manually processing invoices, many hidden costs are almost completely mitigated by automation. In fact, some companies that have switched to automated invoice processing have reduced their costs by as much as 20 times over.
While it’s not unheard of for automation to make mistakes, the lack of human error means there is less time spent fixing mistakes. Automation also eliminates duplicate entries.
It’s estimated that an automated invoice solution can reduce the time spent on admin by as much as 20 hours a week in some cases. Customers also report being paid significantly faster and overdue balances are rarely an issue.
It’s difficult to overstate how much more efficient and customer-friendly the invoicing experience is when it’s automated. This means your customers and your employees will be more satisfied and, hopefully, more productive too.
You can add your business branding to your invoices, creating a bespoke, secure portal from which customers can view their transaction history and make payments.
Automated invoice processing takes care of every stage of the invoicing process and does so with complete transparency. You can also take control as and when required, and use the data and analytics gathered from the software to make smart organisational decisions.
We can help
If you’re interested in finding out more about automated invoices, or any other aspect of your business finances, then get in touch with our financial experts at GoCardless. Find out how GoCardless can help you with ad hoc payments or recurring payments.